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HBR.ORG
HBR Case study
JANUARY–FEBRUARY 2012
reprint r1201X
Play It Safe at Home,
Or Take a Risk
Abroad?
by Michael Chu
Case Study
Michael Chu is a senior lecturer at Harvard Business
School and a managing director of the IGNIA Fund,
a venture capital firm based in Monterrey, Mexico.
A U.S. lease-to-own chain considers whether
to test its business in Mexico. by Michael Chu
play it Safe at
Home, or take
A risk Abroad?
S
HBR’s fictionalized case studies present
dilemmas faced by leaders in real
companies and offer solutions from experts. This
one is based on the HBS Case Study “Aaron’s:
Household Goods for the U.S. Base of the
Pyramid” (case no. 311047) by Michael Chu and
Charles Smithgall, which is available at hbr.org.
2 Harvard Business Review January–February 2012
tan Windham walked into the newest Coe’s store in South Tucson. As
CEO of the lease-to-own chain, he
was eager to see how his 1,000th location
was performing. Aubrey Merrin, the store
manager, met him at the door.
“Mr. Windham, so good to see you, sir.
The new employees are real excited to
meet you. And of course I want to update
you on how everything’s going,” Aubrey
said as he ushered Stan inside. “We’re doing great so far. Open for less than a month
and over 100 customers already. It’s a real
good start, sir, a real good start.”
“You don’t have to call me ‘sir,’ Aubrey,”
Stan said, realizing it was probably hopeless. “Congratulations. I’ve said it before,
but I’ll say it again: I appreciate your taking this on.”
Aubrey had transferred from the Coe’s
up in Flowing Wells, where he’d been the
store manager for 10 years. He was raising
three kids on his own, and although this
location meant a slightly longer commute,
he’d jumped at the opportunity.
“I’m honored, sir, to be opening a brandnew store,” he said. “And with the economy as it is, I’m just happy to be working
for a growing company.” He pointed
up at the celebratory banner that...